nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2019‒03‒25
five papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Asymmetric additionalities between R&D outsourcing locations By María García-Vega; Elena Huergo
  2. Distribution of Industrial Research & Innovation Activities: An Application of Technology Readiness Levels By Mafini Dosso; Lesley Potters; Alexander Tübke
  3. Technological catch-up to the national and regional frontier: Firm-level evidence for India By Shubin Yang; Sandra Lancheros; Chris Milner
  4. Multinational enterprises in domestic value chains By Charles Cadestin; Koen De Backer; Sébastien Miroudot; Laurent Moussiegt; Davide Rigo; Ming Ye
  5. Development and research of models of innovative changes in the quality characteristics of products and technological processes By Levin, Mark (Левин, Марк); Matrosova, Ksenia (Матросова, Ксения); Pertsova, Elena (Перцова, Елена); Shilova, Nadezhda (Шилова, Надежда)

  1. By: María García-Vega; Elena Huergo
    Abstract: This paper empirically examines the additionalities or crowding-out effects of international and national outsourcing of R&D to generate innovation. Using a panel database of about 10,000 Spanish firms for the period 2005-2014, we show that there is asymmetry in the effectiveness of the combined adoption of R&D outsourcing locations. International R&D outsourcing re-inforces the effect of domestic R&D outsourcing. However, national outsourcing does not re-inforce international R&D outsourcing. We next explore sources of additionality. Property Right Theory (PRT) suggests that additionality is high when holdup problems are low. We therefore analyze two important situations where holdup problems are likely to be low: with public foreign providers and in sectors with low technological complexity. Consistent with PRT, our results suggest that additionality is stronger when R&D is acquired from public providers rather than from private providers. Moreover, we find additionality in sectors with medium or low R&D complexity. In sectors with high R&D complexity, domestic and international outsourcing are largely independent. These results also suggest that international R&D outsourcing does not undermine domestic R&D.
    Keywords: Imports of technology; International and national R&D outsourcing; Innovation; Additionality or crowding-out effects. JEL classification: L25; O31; O32
    Date: 2019
  2. By: Mafini Dosso (European Commission - JRC); Lesley Potters (European Commission - JRC); Alexander Tübke (European Commission - JRC)
    Abstract: The Technology Readiness Levels (TRLs) approach is relevant to map the functional decomposition of companies' R&D value chains. TRLs matter for corporate location choices. Knowing what distinct types of R&D&I activities (or TRLs) stay, go and come back in EU territories – and why – is central for policies supporting local industrial and innovation ecosystems and clusters, and the identification and integration into strategic value chains. Fast-developing local strengths of Asian countries such as China, Japan and South Korea, in Automotive, and in Electronics and related fields are shaping companies' geographical decomposition of R&D&I activities. While the EU has strong value chains in e.g. automotive (network of combustion engine) and pharma (highly skilled labour force and strong research institutions), corporate R&D&I investments are finding their way to novel applications in emerging technologies in Asia.
    Keywords: R&D, Innovation; Industrial Innovation Policy; Global Value Chains; Technology Readiness Levels; Regional Innovation Policy
    JEL: O25 O30 R12 R58
    Date: 2019–03
  3. By: Shubin Yang; Sandra Lancheros; Chris Milner
    Abstract: This paper studies productivity convergence to the regional and national frontiers among manufacturing firms in India, using panel data over the period 1999 to 2010. We find evidence of convergence by lagging firms to both their national and regional frontiers, with faster convergence to the national frontier than to their regional frontier. We examine the effects of export behaviour on this process of convergence, and the results demonstrate that exporting promotes productivity growth but slows down the convergence process since export firms tend to be nearer to frontiers. We also investigate the effect of outward FDI (OFDI) on firms’ productivity growth and convergence. Likewise, the results show that OFDI facilitates firms’ productivity growth but decelerates the speed of convergence.
    Keywords: Productivity convergence, technology frontiers, globalisation
    Date: 2019
  4. By: Charles Cadestin; Koen De Backer; Sébastien Miroudot; Laurent Moussiegt; Davide Rigo; Ming Ye
    Abstract: Multinational Enterprises (MNEs) play an important role in host countries’ domestic value chains as part of the global activities of these companies in GVCs. MNE affiliates create directly large volumes of output, value added, international trade and jobs, and in addition they generate also important indirect effects. Foreign affiliates in host countries are not only sourcing locally produced inputs, tradeable as well as non-tradeable, but also produce final and intermediate products sold and used within the domestic economy. Based on the OECD Analytical AMNE database, this paper analyses the domestic linkages of MNE affiliates in host economies in order to get better insights in the role MNEs play across countries.
    Date: 2019–03–12
  5. By: Levin, Mark (Левин, Марк) (The Russian Presidential Academy of National Economy and Public Administration); Matrosova, Ksenia (Матросова, Ксения) (The Russian Presidential Academy of National Economy and Public Administration); Pertsova, Elena (Перцова, Елена) (The Russian Presidential Academy of National Economy and Public Administration); Shilova, Nadezhda (Шилова, Надежда) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: One of the main problems of expanding the range of goods and services is not only to increase their production volumes but also to improve their quality characteristics. As a rule it is difficult to improve the performance of some products without changing others characteristics. The subject of research in this paper is the theory of such changes Such an analysis is impossible without the development of economic models that extend the traditional models of the spread of innovation, their competition, as well as the economic conditions that ensure the emergence and development of innovation. First of all the study of interrelated innovation processes will allow us to proceed to this task.
    Keywords: microeconomics, innovation, quality, technological changes, production chains, hedonic prices.
    Date: 2019–03

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